Originally Posted by perfectblade
you're the naive one if you don't recognize how big piracy is in china. it was quite easy to buy modified consoles to play pirated games even DURING the ban. not to mention how loads of malls have people openly selling pirated stuff-not just on the street but even in more official places of business.
still this is pretty cool overall and i can't really comprehend why they wouldn't have done this before. though i guess they do have some pretty crazy protectionist policies going on there overall
I'm not naïve, just better informed than you. Allow me to explain why this is good for hardware manufacturers(despite Forbes contributor thoughtful remarks), developers and Chinese gamers...even for you and for me Warning: Spoiler! (Click to show)
Piracy is there because...what? Because the ban. That didn't stop people from importing/buying consoles at high prices, also original games to play online, because YES, despite what mass media and opinion crafters tells you, you can easily play online in China with a perfectly original Xbox360/PS3 and a perfectly original game. As long as it is Region Free/NTSC-J no prob. You can also play with PAL/NTSC, but I've never used these so there will probably be some loops to jump through. Nevermind, they have a huge black market because that is what is created when there is a demand for something and there is no/small offer to satiate that demand...or a prohibition/ban in place.(drugs in every country, guns in many...consoles and games in China
Who profits from it? The black marketeers, the suppliers and the people that allow that black market to exist. The import heads are either importing them from the cheapest supplier available, grabbing that consoles from friendly onsite-foreign factories, or worse, stealthily funneling part of the production to satiate that demand. "Malfunctioning board","melted plastic"...you know, the usual drill. Profit margins on the consoles? From the cost of importing/over-producing at source/etc. to the price you want to set. Profit margin on the games?The cost of a bulk shipment of DVD/HD-DVD/BR to the price they set. That said, I've seen console/origina game prices first-hand in those malls you say...they're even higher than in Europe
, and we are already slapped by the usual direct conversion $=€.
Now, let's see. Piracy is rampant in China because, in essence, import prices are absurdily high(like import in every country) so people chip their consoles and pirate games. None of that over-profit goes to the hardware manufacturers, the developers, etc. Now, you eliminate that ban barrier and manufacturers can ship their consoles to China. Because you're cutting many parts of the chain and now you're the one who sets the price as well as manufacturing the product, you can drop it real low but just above production cost and still profit...or sell those consoles at the same price as in Europe/USA, which still is lower than in lots of places in China and profit even more like a bastard. That takes care of the console black market, cause you're now the official supplier and your prices are better than those of the "unnoficial" world. Nobody is gonna get a product which costs more or doesn't have any kind of warranty, etc. when they can grab the same from their official manufacturers will all the bells and whistles.
Now, games. If PS3 DRM is something to go by, they'll have at least a good 4 year run before the console gets cracked. But you don't want to alienate such a HUGE potential market. You wanna grab them by the balls and keep them hooked. You wanna treat them well to have a strong entry. So you start supporting the market. Lower prices, offer good access to online(the same as before), localize your games, promote on site first party/third party development,etc,etc. They can cut a game's price by half because the potential market is just as big as the Europe/USA market combined and even more. I mean, price every original game at 5$ equivalence on yuans. That's not expensive for chinese. Multiply it by the installed and NOW KNOWN console base. Suddenly, Activision is selling their chinese flavor of CoD(People's Army saving the day against the imperialist USA nazi forces) well below the price of any CoD EVER but they're getting 10x the profits...cause the market. And you still have a perfectly original console with a perfectly original games collection which can play online without a problem. And it's cheaper than going black market before the ban was lifted.
Now, there is the problem of the government. But with such a huge pile of money waiting for them in taxes and such things, I highly doubt they're going to get all Mao/Khmer Rouge on this kind of western cultural corruption.
All that wall of text, in sum: profits for whoever manufactured/shipped that consoles; profits for every developer who gets to sell in a official or unnoficial way in China; creation and development of a strong chinese market(developers, producers, distributors,etc); and in turn, as a market and huge proftis oppurtunity opens for developers, they can get even more money to put toward games, which benefits us. That is, at least, the potential on this situation.
Feel free to correct me where you think I'm wrong, I'm open for debate...but offer some kind of reasoning or insight other than the official western propaganda and press. It's really tiring to read/hear/watch about child-eating western-hating pirating cheapskate chinese communist all the time. Cause the news said so.